CHICAGO, United States — Target said on Thursday that it plans to hire about 120,000 seasonal workers for the holidays, up 20 percent on last year, as the retailer gears up for the busiest time of the year.

Target, which employs about 350,000 people in 1,839 stores across the United States, said it would also offer extra hours to existing workers.

Retailers' holiday hiring plans often reflect their sales expectations for the most competitive shopping season of the year, which begins a day after Thanksgiving and continues into early January. For many stores, holiday shopping accounts for nearly a third of annual sales.

Macy's Inc said on Wednesday it would hire 80,000 temporary workers for the holiday season, in line with last year's initial hiring, and assign more hands to cater to online orders.

Minneapolis-based Target, which began raising hourly wages to $12 from $11 earlier this year, said all workers hired after Sept. 16 would receive a minimum of $12 an hour.

Last year, the company vowed to pay $15 an hour by the end of 2020, the so-called "living wage" for which labor advocates across the United States are campaigning.

Target also said it was investing more than $2 million in an employee rewards program during the holiday season.

By Richa Naidu; editor: Chizu Nomiyama